Quantum Computing: A Huge Q4 Earnings Miss And Little Breakeven Visibility

(8min)

Summary

  • Quantum Computing Inc. remains a speculative bet with significant volatility. The market's hopes for QUBT's fast track to profitability seem to have taken a hit now.
  • QUBT's Q4 2024 results showed a substantial net loss of $51.2 million, with increased OPEX and a 17% YoY revenue decline, despite a rise in gross profit margin.
  • The company's future growth hinges on the operational launch of its Quantum Photonic Chip Foundry and securing preorders, but fierce competition limits its market share potential.
  • Maintaining a "hold" rating due to uncertain breakeven path, high competition, and the market's unrealistic expectations for rapid profitability.
  • Looking for a helping hand in the market? Members of Beyond the Wall Investing get exclusive ideas and guidance to navigate any climate. Learn More »

3D illustration of a working quantum computer. Quantum computing concept

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Introduction

In early December 2024, I wrote my first and so far, the only article on Quantum Computing Inc. (QUBT) stock, calling it a speculative bet given its meteoric rise in a matter of a few

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This article was written by

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Oakoff Investments is a personal portfolio manager and a quantitative research analyst with 5 years helping readers find a reasonable balance between growth and value by sharing proprietary Wall Street information.

He leads the investing group Beyond the Wall Investing with features that include: a fundamentals-based portfolio, weekly analysis on insights from institutional investors, regular alerts for short-term trade ideas based on technical signals, ticker feedback by request from readers, and community chat. Learn more.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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